POWERED BY MOMENTUM MEDIA
Aberdeen's Deutsche acquisition gains traction
Aberdeen Asset Management has earned a cautious thumbs up from ratings house Morningstar on the manner in which it has handled the acquisition of Deutsche Bank’s local equities funds management business.
In an assessment issued this week, Morningstar said it remained cautious but more upbeat in its view of the Aberdeen strategy now that the changes had been completed.
“The Deutsche acquisition has been handled effectively and Aberdeen has progressively removed incumbent positions to end up with a portfolio that reflects its own investment views,” the ratings house assessment said.
It noted that examples of this had included the removal of Allco Equity Partners, Centro Properties, and Commander Communications.
“The team of five runs a well-versed investment process and the result is a concentrated vanilla portfolio exuding stability,” the Morningstar assessment said.
“While all the pieces now appear to be in place for Aberdeen, we remain cautious about the team’s lack of experience and depth relative to its peers. We also have some misgivings about the less than ideal remuneration structure — bonuses are linked to the performance of the Aberdeen business, rather than encouraging key investment staff to have skin in the game,” it said.
Recommended for you
The two funds have announced the signing of a non-binding MOU to explore a potential merger.
The board must shift its focus from managing inflation to stimulating the economy with the trimmed mean inflation figure edging closer to the 2.5 per cent target, economists have said.
ASIC chair Joe Longo says superannuation trustees must do more to protect members from misconduct and high-risk schemes.
Super fund mergers are rising, but poor planning during successor fund transfers has left members and employers exposed to serious risks.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
